Monday, March 2nd-0.4°C
25327
23829

BlackBerry beats expectations with $23 million Q1 profit, revenue falls

WATERLOO, Ont. - BlackBerry delivered a surprise to investors, earning a $23-million profit in its most recent quarter as its efforts to remodel its smartphone business made some headway.

Shares in the company jumped 14 per cent, or $1.26, to $10.26 in early trading on the Toronto Stock Exchange on Thursday morning.

Chief executive John Chen has said he aims to make BlackBerry a break-even company by the end of the fiscal year with a target of rising to profitability in its 2016 financial year.

"Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement," he said in a statement.

Chen was hired last year to reshape BlackBerry's business model, cut costs and lead an effort to help the company find a better footing in the highly competitive tech sector.

On a conference call with analysts, Chen gave some insight into BlackBerry's plans for the rest of the year.

He said the company will launch a new keyboard smartphone model called the BlackBerry Passport in September, while he also plans to hold an event the same month to showcase its new hardware lineup for next year.

BlackBerry is dedicating more resources to serving business and public sector customers after a failed attempt to compete with Apple's iPhone and the various smartphones on the Android operating system that dominate the consumer market.

The Waterloo, Ont.-based smartphone maker said the profit amounted to four cents per share, compared with a loss of $84 million or 16 cents a year ago.

On an adjusted basis, BlackBerry reported a loss of 11 cents per share, which came in above analyst estimates of a loss of 26 cents, according to Thomson Reuters.

However, revenue tumbled to $966 million for the three months ended May 31, compared with $3.07 billion a year ago.

BlackBerry (TSX:BB) will hold its annual shareholders meeting later this morning in Waterloo.

During the quarter, BlackBerry booked revenue for about 2.6 million smartphone sales, which is an increase from the revenue from 1.3 million devices a quarter earlier.

The results demonstrate that the company is "firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio," Chen said.

BlackBerry also boosted its cash holdings to $3.1 billion, from $2.7 billion in the previous quarter, with the help of a tax refund and money from the recent sale of real estate assets.

The Canadian Press


Read more Business News

24357


Recent Trending




Today's Market
S&P TSX15245.69+11.351
S&P CDNX705.90-0.83
DJIA18220.65+87.95
Nasdaq4992.965+29.437
S&P 5002110.85+6.35
CDN Dollar0.7964-0.0031
Gold1203.00+6.10
Oil51.29-0.85
Lumber297.20+1.20
Natural Gas2.895-0.007

 
Okanagan Companies
Pacific Safety0.12+0.005
Knighthawk0.010.00
QHR Technologies Inc1.60+0.05
Cantex0.035-0.005
Anavex Life Sciences0.190.00
Metalex Ventures0.035-0.005
Russel Metals25.33-0.05
Copper Mountain Mining1.33+0.03
Colorado Resources0.135-0.015
ReliaBrand Inc0.008-0.0007
Sunrise Resources Ltd0.035-0.015
Mission Ready Services0.225-0.01

 



25103

FEATURED Property
2103526#312- 265 Snowsell Street
2 bedrooms 2 baths
$198,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...

_








Member of BC Press Council


25107